GBP/USD – 1.2140
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Current selloff dampened our near term bullishness and signals recent decline has resumed, hence downside risk remains for further fall to 1.2100, however, loss of downward momentum should prevent sharp fall below 1.2070 and reckon 1.2040-50 would hold from here, sterling may stage another rebound from there later.
In view of this, would not chase this fall here and would be prudent to stand aside in the meantime. Above the Kijun-Sen (now at 1.2188) would suggest an intra-day low is formed instead, risk rebound to 1.2215 but break there is needed to confirm and bring a stronger rebound towards resistance at 1.2251.
